Am I being a Scaredy Cat?

CatFlap1_2

Hello all,

I am buying my first house and want to pay the mortgage effectively to lead to a second property purchase

I am looking at a repayment mortgage where it is possible to pay off an extra 10% of the value on the loan each year without being hit with fees. Do you guys advocate paying off as much of the mortage as I can yearly(flex repayments).
A friend of mine recently stressed that I was being far too cautious and I shouldn't worry about paying the max I can a year I should SAVE any extra money for a second house deposit.

homer_j_3

I think that what is best for you is not best for everybody else.

There are potential tax implications with 2nd properties and you need to understand what these mean to YOU specifically.

There are mortgages that can be completely flexible so you can overpay until your heart is content and if it is has a drawdown or borrow back facility then you can always access these overpayments at a later date.

Without knowing properly what you want to do, it is impossible to make a call on the best option but if you pay your mortgage off first or get it down to a very easily manageble amount before taking on a 2nd mortgage, that may be something worth considering as you will have to be able to pay both mortgages should the other one not be self funding through rent for example.

amcluesent

I overpaid capital to my simple repayment mortgage whenever I could. Bought as FTB in 1986, owned outright by 2003; allowed me to take an adult 'gap year' without income

CatFlap1_2

hmmmmm, interesting points thanks both!

My repayments are managable and I am considering the rent a room scheme too ...
Seems to be no straight forward answer!